The International Monetary Fund (IMF) has released a new economic forecast that raises concerns, particularly for Germany.
The IMF now predicts that Germany’s economy will experience no growth at all in 2025, a revision from January’s forecast of a 0.3% increase.
The outlook is not much better globally. The IMF’s updated projections show that the global economy will grow by only 2.8%, which is half a percentage point lower than previously expected. A key factor contributing to this slowdown is the escalation of the trade war, particularly due to U.S. tariffs on imports.
The U.S. and China are expected to bear the brunt of this economic downturn. The IMF has also downgraded its forecast for the U.S. economy, now predicting a 1.8% growth rate, down from the earlier forecast of 2.7%.
